Linde to build top air separation unit in Indonesia
The technology group The Linde Group said it closed a long-term deal to supply Indonesian steel corporation PT. Krakatau POSCO (PTKP) with industrial gases.
PTKP is a joint venture between the South Korean steel corporation POSCO and Krakatau Steel.
Linde will invest around €88mn in constructing the country’s largest air separation unit (ASU) at Cilegon, around 100 kilometres west of Jakarta, it said.
“This on-site project is Linde’s largest single investment in Indonesia to date,” said Sanjiv Lamba, executive board member of Linde AG and responsible for the company’s business in Asia.
“We are thus consolidating our position in one of the fastest growing economies in Southeast Asia,” he added. “This move is another milestone in our strategy to systematically build our business in Asia’s emerging economies.”
PTKP is constructing the first integrated steelworks in southeast Asia at Cilegon. Annual production capacity is initially set at 3mn metric tons of steel.
To supply the steelworks with gases on site, Linde’s engineering division will plan and construct a new ASU with a capacity of around 2,000 metric tons/day of oxygen, the company said.
In addition to gaseous products for the steelworks, the new ASU will also generate oxygen, nitrogen and argon in liquid form for the local market.
This will ensure a steady supply of these gases to meet rising demand for industrial gases in Western Java, officials said.
The ASU is scheduled to go onstream in October 2013.
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